Government believes that the maritime sector and the cluster of onshore activities generated by such industry continue to represent an important component of Malta’s economy and provide a variety of quality jobs for Maltese workers.
However, one of the first steps Malta needs to undertake is to identify value chains that could deliver sustainable growth and jobs in the blue economy.
Growth must be co-ordinated and planned and must include all the stakeholders’ valuable input. To this end, the government recently launched the Integrated Maritime National Strategy Committee to enable Malta to fully exploit and realise its potential in this sector.
It aims to devise a sustainable strategy for the government’s vision and goals and to manage marine and maritime activities by adopting an integrated approach across maritime-related policies and activities and governance structures.
An integrated maritime policy will trigger government’s vision of transforming Malta into a maritime hub.
Time is ripe for ship management activities to become the next growth area for this industry
Our maritime sector already contributes substantially towards Malta’s economy but we must open up this market further to seek new and emerging niche markets.
Government is confident that there is still room for more investment and the creation of quality jobs if the blue economy is developed in a sustainable manner.
In the light of the critical mass that has been achieved by the Maltese shipping industry, with Malta’s geographical location and the availability of skilled and qualified maritime professionals, we believe the time is ripe for ship management activities to become the next growth area for this industry.
Ship management is a core shipping activity that is increasingly being outsourced to third-party ship management companies. Outsourcing ship management services to third-party service providers can help shipping companies enhance their operational efficiency in running the day-to-day operations of their respective vessels.
Such support typically includes the provision of technical and/or crew management as well as certain other services, such as co-ordinating inspections, contract negotiations etc. In fact, there are a wide range of activities involved in the management and operation of a vessel, which can include maintenance engineering, vessel crewing, quality system manage-ment, safety system manage-ment, integrated logistics support, property management, inven-tory control, waste manage-ment and procurement.
Nowadays, ship management is often outsourced to specialised third party ship management companies for the purpose of restructuring of international shipping and a separation of ownership and management.
Research into the reasons for using third-party ship managers and the benefits this brings to shipowners has established two key findings. First, ship owners can turn to third-party ship managers to ensure flexibility and at the same time become more competitive through cost reduction and, secondly, effective use of third-party ship management can be achieved through the full use of ship managers’ investments, innovations and specialised professional capabilities that would otherwise be prohibitively expensive to replicate.
Government pledges to continue creating a favourable environment to attract foreign ship managers to conduct their operations from within a Maltese company structure while complying with international and EU standards and regulations to ensure the provision of services of the highest quality for their clients.
Given the intrinsic link between shipping operations and ship management, the development of this sector is crucial for Malta’s further growth as a top notch European jurisdiction.
Our country’s legal and fiscal framework relating to ship management activities already provides an attractive proposition for such activities, bringing Malta on a level playing field with other traditional European ship management jurisdictions. Other critical features include a reputable flag, a reliable and efficient regulator that understands the needs of the industry, a skilled and dynamic labour force and an accounting, banking and administrative framework that can adequately support ship managers who intend using Malta as a base for the conduct of their business.
Government is adamant that the broad spectrum of the mari-time sector provides infinite opportunities and potential for growth and sustainability.
Malta has to persevere in learning to value its long-standing maritime tradition. Our sea has to be given its rightful place in our economy.
Marine and maritime economy offer real and tangible development potential that can generate sustainable economic growth and create jobs. It is an ambitious project but the government is convinced that its commitment will reap the merited opportunities.
edward.zammit-lewis@gov.mt
Edward Zammit Lewis is Parliamentary Secretary for Compettiveness and Economic Growth.